Eaton Vance Tax-Managed Diversified Equity Income Fund Report of Earnings

BOSTON, Oct. 2 /PRNewswire-FirstCall/ -- Eaton Vance Tax-Managed Diversified Equity Income Fund (NYSE: ETY), a diversified closed-end investment company, today announced the earnings of the Fund for the three months ended July 31, 2009 and the nine months ended July 31, 2009. The Fund's fiscal year ends on October 31, 2009.

For the three months ended July 31, 2009, the Fund had net investment income of $7,543,629 ($0.051 per common share). For the nine months ended July 31, 2009, the Fund had net investment income of $23,597,348 ($0.158 per common share). In comparison, for the three months ended July 31, 2008, the Fund had net investment income of $8,483,430 ($0.056 per common share). For the nine months ended July 31, 2008, the Fund had net investment income of $35,228,165 ($0.235 per common share).

Net realized and unrealized gains for the three months ended July 31, 2009 were $232,930,062 ($1.556 per common share) and net realized and unrealized gains for the nine months ended July 31, 2009 were $159,677,443 ($1.067 per common share). In comparison, net realized and unrealized losses for the three months ended July 31, 2008 were $139,246,701 ($0.928 per common share) and net realized and unrealized losses for the nine months ended July 31, 2008 were $262,357,091 ($1.752 per common share).

On July 31, 2009, net assets of the Fund were $1,913,333,624. The net asset value per common share on July 31, 2009 was $12.78 based on 149,711,079 common shares outstanding. In comparison, on July 31, 2008, net assets of the Fund were $2,498,856,966. The net asset value per common share on July 31, 2008 was $16.69 based on 149,711,079 common shares outstanding.

The Fund is managed by Eaton Vance Management, a subsidiary of Eaton Vance Corp. (NYSE: EV), based in Boston, one of the oldest investment management firms in the United States, with a history dating back to 1924. Eaton Vance and its affiliates managed $147.7 billion in assets as of August 31, 2009, offering individuals and institutions a broad array of investment products and wealth management solutions. The Company's long record of providing exemplary service and attractive returns through a variety of market conditions has made Eaton Vance the investment manager of choice for many of today's most discerning investors. For more information about Eaton Vance, visit www.eatonvance.com.

            EATON VANCE TAX-MANAGED DIVERSIFIED EQUITY INCOME FUND
                       SUMMARY OF RESULTS OF OPERATIONS
                   (in thousands, except per share amounts)

                            Three Months Ended     Nine Months Ended
                                 July 31,              July 31,
                                 --------              --------
                               2009       2008      2009        2008
                               ----       ----      ----        ----
    Gross investment
     income                 $12,571    $15,292     $37,919     $56,164
    Operating expenses       (5,028)    (6,809)    (14,322)    (20,936)
                             ------     ------     -------     -------
      Net investment
       income                $7,543     $8,483     $23,597     $35,228
    Net realized and
     unrealized gains
     (losses) on
     investments           $232,930  $(139,247)   $159,677   $(262,357)
                           --------  ---------    --------   ---------
      Net increase
       (decrease)
       in net assets
       from operations     $240,473  $(130,764)   $183,274   $(227,129)
                           ========  =========    ========   =========

    Earnings per Share
     Outstanding
    --------------------
    Gross investment
     income                  $0.084     $0.102      $0.253      $0.375
    Operating expenses       (0.033)    (0.046)     (0.095)     (0.140)
                             ------     ------      ------      ------
      Net investment
       income                $0.051     $0.056      $0.158      $0.235
    Net realized and
     unrealized gains
     (losses) on
     investments             $1.556    $(0.928)     $1.067     $(1.752)
                             ------    -------      ------     -------
      Net increase
       (decrease)
       in net assets
       from operations       $1.607    $(0.872)     $1.225     $(1.517)
                             ======    =======      ======     =======


    Net Asset Value at
     July 31 (Common
     Shares )
    ------------------
      Net assets                                $1,913,334  $2,498,857
      Shares outstanding                           149,711     149,711
      Net asset value per
       share outstanding                            $12.78      $16.69

    Market Value Summary
     (Common Shares )
    -----------------------
      Market price on NYSE
       at July 31                                   $12.68      $14.85
      High market price
       (period ended July 31)                       $12.70      $17.17
      Low market price
       (period ended July 31)                        $7.87      $13.68

SOURCE Eaton Vance Management